Originally Posted On: https://activerain.com/blogsview/5568609/seller-beware–house-sale-scams
Sales of existing homes in the U.S. reached over five million in 2019 with over 600,000 new homes sold. Are you getting ready to sell your home?
A house sale is stressful enough but add to the list some common scams that could cost you money and keep you from selling your home quickly.
Read on for information that’ll keep you safe from some common and damaging scams.
Making a House Sale to a Cash Home Buyer
Selling to cash home buyers is great in some situations. Selling your home to a cash buyer is faster since the buyer doesn’t need a mortgage.
This means a home sale can close in as little as five days.
Since the buyer isn’t getting a mortgage, there’s no lender making demands for a home appraisal or expensive repairs. When you sell to a cash buyer, you’re selling the house as-is.
Cash offers aren’t always as high as other offers, but you avoid spending on repairs, upgrades, and closing costs. With all costs considered, you may make almost as much with far less hassle.
There are some red flags to be aware of when working with a cash buyer.
Cash Buyer Scams
Keep an eye out for these red flags when selling your house on your own. Remember the old adage, “If it looks too good to be true, it probably is.”
The Foreign Buyer
Did you get an email from a foreign buyer looking to move to the United States? Did he offer to send you a cashier’s check? Was the offer great?
Move on! This is a common scam, so don’t fall for it. The scammer ends up walking away with some of your money but you’ll never see that cashier’s check.
Too Much Information
If a buyer contacts you by email and gives you tons of information, it may be a scam. These scammers offer lots of contact info and even send personal financial information.
This gives them the appearance of transparency but don’t fall for it. Too much information is a red flag.
If a buyer sends you too much money for a down payment and asks you to return some of the funds, watch out! This is a common scam.
By the time you wire the overage back to their account, your bank discovers the initial check was a fake. You’re on the hook for the thousands of dollars you’ve wired to their account.
Lots of legitimate cash buyers are investors buying homes, fixing them up, and reselling them. These investors are professionals and they look like it.
Beware of investors whose advertisements are handwritten signs attached to telephone poles.
House Sales to Cash Buyers
Making a house sale to a cash home buyer is often the perfect solution for many sellers. A cash sale saves time, money, and energy on fixing your home.
Cash buyer scams abound, so do your research before you sell. If you enter a cash deal, make sure the buyer is reputable and experienced in these types of sales.
Never sign any papers you don’t understand and don’t hesitate to have a lawyer look over the final deal before you sign.
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